Getting your first home sorted goes much more smoothly when you do things in the right order. A few of the big decisions, like the First Home Super Saver scheme, have to be made before ownership of a property transfers to you. A pre-approval is best done before you start inspecting homes and making offers.
This timeline is written for first home buyers in Northern Adelaide, so it uses South Australian rules where they apply. Let's walk through it.
When Should You Start Saving and Checking Eligibility?
Start as early as you can, because some saving tools only work if you use them before you own property. The First Home Super Saver (FHSS) scheme is a good example.
Under the FHSS scheme, you make voluntary contributions to super and then ask the ATO to work out how much you can release. You need to request that determination before ownership of any real property transfers to you, which generally follows settlement. In most cases it takes 15 to 20 business days for the fund to release the money and for the ATO to pay it. The limits are $15,000 of voluntary contributions in a single financial year and $50,000 in total.
The trade-off is tax and paperwork. Tax is withheld on release, and you must sign a contract to buy or build (or put the money back into super) within the ATO's time limits and tell the ATO. If you miss that, extra FHSS tax can apply. Speak with your accountant before you start contributing, because how it affects you depends on your own situation.
Your first home buyer budget should also allow for costs that sit on top of the deposit, such as stamp duty where it applies, legal fees and inspections.
Why Get Pre-Approval Before You Start Inspecting Homes?
Pre-approval tells you how much a lender is likely to let you borrow, so you can shop within a real budget. It is not a final approval, because the lender still checks the actual property and your circumstances at the time of your formal home loan application.
As an example, consider a couple who are pre-approved to borrow $500,000. Using an illustrative rate of 6.75% p.a. over 30 years, repayments would be about $3,240 a month. They check that figure against their current rent and bills, and decide they would be comfortable with it. They then set their search at a price that keeps the loan at or under that amount. When they find a place, they already know their limit, and they make an offer without second-guessing themselves.
The trade-off is that a pre-approval can change if your income, debts or savings change before you buy, and actual rates will differ from the illustrative one. A broker can compare home loan options across lenders for you, and a calculator is handy for testing different loan sizes.
Which South Australian Grants and Stamp Duty Relief Can You Claim?
In South Australia, the first home owner grant and stamp duty relief are for new homes, not established ones. The South Australian FHOG is $15,000 for eligible new homes only, with no property value cap for contracts entered into on or after 6 June 2024.
Stamp duty relief covers new homes, off-the-plan apartments and vacant land to build on. If you are looking at an established home in Northern Adelaide, neither applies, so build that into your budget.
There are a few rules to check before you sign. At least one applicant must be an Australian citizen or permanent resident. For contracts from 13 February 2025, you are not eligible if you or your spouse or domestic partner own or have owned residential property in Australia. You must also live in the home for at least six continuous months, starting within 12 months of settlement. The grant and the relief are applied for separately, so tick off both. If relief was not claimed at settlement, a refund can be claimed within five years of settlement.
Can You Buy With a 5% Deposit and Avoid LMI?
Yes, the Australian Government 5% Deposit Scheme lets eligible first home buyers buy with a 5% deposit without paying Lenders Mortgage Insurance (LMI). Housing Australia backs the lender for the part of the loan between your deposit and 20% of the property value. There are no income caps and no place limits.
You can only apply through a participating lender, not directly. Both the purchase price and the lender's valuation need to be at or under the price cap. For South Australia, the cap is $900,000 for the capital city and regional centres category and $500,000 for other areas. Which one applies depends on the property's suburb and postcode in Housing Australia's postcode search tool, so check the exact address before you get attached to a place.
There are some conditions. You need to move in within six months of settlement and keep living there while the backing is active. If you do not, the lender may require you to pay LMI. The backing also protects the lender, not you, and you remain responsible for all loan costs and repayments.
If you want a different path, HomeStart offers shared equity with a 5% deposit, with the contribution capped at $200,000 for up to 25% of the purchase price. The trade-off is that someone else holds equity in your home. Our first home buyers page explains how these options compare.
What Happens Between Signing the Contract and Settlement?
After you sign, the lender finalises your loan, and your conveyancer or solicitor prepares everything for settlement. This is when your pre-approval turns into a final approval, so keep your finances steady. Avoid new debts, big purchases or job changes until you have the keys.
In this window you will also arrange building insurance and lodge your grant or stamp duty relief claims, if you are eligible. If you used the FHSS scheme, remember your deadline to notify the ATO after signing the contract.
Plan your move-in as well. The 5% Deposit Scheme expects you to move in within six months, and the SA grant expects you to move in within 12 months. Putting those dates in your calendar early saves any nasty surprises later.
Want someone to map out your own timeline? Call one of our team or book an appointment at a time that works for you. We will go through your numbers and work out the right order of steps, so you know what to do and when.
Frequently Asked Questions
When should a first home buyer use the First Home Super Saver scheme?
You need to request your FHSS determination before ownership of any real property transfers to you, which generally follows settlement. Release can take 15 to 20 business days in most cases, so start early and speak with your accountant.
Does the South Australian first home owner grant apply to established homes?
No. The South Australian FHOG is $15,000 and applies to eligible new homes only. Stamp duty relief is also for new homes, off-the-plan apartments and vacant land to build on.
Can I buy with a 5% deposit and avoid LMI?
Eligible first home buyers can use the Australian Government 5% Deposit Scheme through a participating lender and avoid LMI. You must meet the price cap and move in within six months of settlement, or the lender may require you to pay LMI.
Why get pre-approval before looking at homes?
Pre-approval shows how much a lender is likely to let you borrow, so you can search within a realistic budget. It is not a final approval, and it can change if your circumstances change.
